Failed directors should be retrained

R3 is pushing for the measures after it discovered in a survey that mismanagement has been the cause of almost 70,000 company collapses in the last ten years and that 47% of the failed businesses had suffered financial difficulties before.

The findings come as the government attempts to encourage enterprise by relaxing insolvency laws.

Roger Oldfield, former president of R3, said the government believed that removing the stigma of failure would be good for British business, but added that the real solution would be for the government to force retraining on failed directors or make it compulsory for directors to produce evidence of their business qualifications.

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